Page 60 - DMGT509_RURAL MARKETING

Unit 3: Rural Marketing Model

4. The Company should develop a profile for the ........................ consumers. Notes
5. The main theme of the company should look for the ........................ of the consumer.
6. Most of the companies feel that ........................ is the major problem in rural market.
7. The rural markets are estimated to be growing fastly compared to the ........................ markets.

8. A marked increase in the rural ........................ due to agrarian prosperity.

3.3 What Makes Rural Markets Attractive?

Rural market has following arrived and the following facts substantiate this.
 742 million people

 Estimated annual size of the rural market
 FMCG 65,000 Crores
 Durables 5,000 Crores
 Agri-inputs (incl. tractors) 45,000 Crores

 2/4 wheelers 8,000 Crores
 In 2001-02, LIC sold 55 % of its policies in rural India.
 Of two million BSNL mobile connections, 50% in small towns/villages.
 Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT).

 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban)
with cumulative credit of 977 billion resulting in tremendous liquidity.
 Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these
towns on Rediff online shopping site
 42 million rural HHs availing banking services in comparison to 27 million urban HHs.
 Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in
urban.

Strategies

Dynamics of rural markets differ from other market types, and similarly rural marketing strategies
are also significantly different from the marketing strategies aimed at an urban or industrial
consumer. Rural markets and rural marketing involve a number of strategies, which include:
Client and Location specific promotion involves a strategy designed to be suitable to the location
and the client.
Joint or co-operative promotion strategy involves participation between the marketing agencies
and the client.

‘Bundling of inputs’ denote a marketing strategy, in which several related items are sold to the
target client, including arrangements of credit, after-sale service, and so on.
Management of demand involves continuous market research of buyer’s needs and problems at
various levels so that continuous improvements and innovations can be undertaken for a
sustainable market performance.

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